On January 1, 2015, Stoops Entertainment purchases a building for $450,000, paying $110,000 down and borrowing the remaining $340,000, signing a 9%, 10-year mortgage. Installment payments of $4,306.98 are due at the end of each month, with the first payment due on January 31, 2015.

Record the purchase of the building on January 1, January 31, 2015.

2--Complete the first three rows of an amortization schedule

3-a.

Record the first monthly mortgage payment on January 31, 2015.

4--How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?

5.	Total payments over the 10 years are $516,838 ($4,306.98 120 monthly payments). How much of this is interest expense and how much is actual payment of the loan?